Contents

Overview

"The Partnership for Market Readiness (PMR)—bringing together developed and developing countries— provides a platform for sharing experience, fostering new & innovative market-based instruments, and building market readiness capacity for countries to scale up climate change mitigation efforts.

The PMR is country-led. It provides financial and technical support to enhance a country’s capacity to build market readiness components and implement market-based instruments, such as a domestic emissions trading system (ETS) or a scaled-up crediting mechanism.

PMR Implementing Countries are at different stages of market readiness and will approach the use of market instruments in different ways. Some will focus on building core readiness components, such as systems for monitoring, reporting and verification (MRV), data collection, baseline setting, and establishing regulatory institutions; others may be in a position to implement and pilot a new domestic or international market-based scheme.

Capacity building for market readiness and piloting can have cross-cutting benefits that are relevant to supporting domestic climate change policies, elaborating low emission development strategies, and implementing mitigation actions."1

Core objectives

"The PMR supports four core objectives:

Provide grant funding for building market readiness components;

Pilot and test new concepts for market instruments (e.g., domestic ETS and new crediting mechanisms);

Provide a platform for technical discussions, South-South exchange and collective innovation on new market instruments; and

Share lessons learned & best practices"1

Phases and Framework

Expression of Interest (EoI) Phase: A country submits an EoI to the PMR Secretariat, which is subsequently presented to the PA for confirmation as an Implementing Country Participant. In 2011, the PMR reached its target of 15 Implementing Country Participants. Following confirmation, a country presents to the PA a framework of proposed PMR activities in order to receive the first phase of PMR funding.

Preparation Phase: With a Preparation Funding allocation from the PA of US$350,000, an Implementing Country Participant formulates its Market Readiness Proposal (MRP), which details the country’s road map for its proposed market-based instrument and market readiness components, as well as a funding estimate for its implementation.

Implementation Phase: An Implementing Country Participant implements readiness components outlined in the MRP, including piloting the proposed market instrument(s) where possible. Implementation is supported by PMR funding allocated by the Partnership Assembly and other funding sources.1

Country Context and Support

Brazil

Reduce emissions by 36.1%-38.9% below BAU by 2020 as part of voluntary commitment.

Participate in new international market mechanism and explore NAMAs for energy, industry and agriculture sectors.

Review ETS practices, and study of carbon tax options.

Progress and Outcomes

The Programme for Market Readiness aims to provide a platform for technical discussions and the exchange of information on market instruments for mitigation, and to help interested countries build capacity for scaling up their mitigation efforts through market instruments, and to pilot instruments appropriate to their domestic context.
Capacity building needs indentified include: “Assessment for utilizing market mechanisms, building/enhancing capacity of data collection, Designing/enhancing existing MRV frameworks to ensure transparency, quality, credibility and consistency with international good practice, carrying out capacity building activities for cross-agency dialogues and broader consultations, facilitate design of policy and legal frameworks for market instruments, piloting and testing effective market instruments.”